Guest Post by John Little - OmegaShock.com
People always want to talk about a conspiracy, whenever things go bad. That is completely understandable, and there is some truth to it.
However, not everything is a conspiracy. Some events occur naturally, and you will find the most conspiracy amongst those who are trying to avoid that which is natural.
I like to think of it as jockying for the best position in the lifeboat.
Now, where was I… oh yes …economic collapse.
Economic CollapseAn economic collapse comes from you and me. We Little people are the cause. (And yes, my last name really is Little.) And, we cause this economic collapse by the choices that we make.
When you don’t have very much money…
…you buy less.
…you buy less.
…you buy less.
…you buy less.
Who do Americans buy from?
What do the Chinese normally buy?
Saudi ArabiaChina buys other stuff, but oil is a big one. And when Chinese companies have fewer orders, they consume less oil. Those companies also lay off their workers, which means that those workers ALSO consume less oil.
…and so on…
…and so forth.
What does Saudi Arabia do about this?
So, what does Saudi Arabia do?
They could lower production, and Saudi Arabia has done that in the past. But, the results of lowering production was a loss of market share, and they don’t want to do that this time. Also, the king of Saudi Arabia is on his last legs, and his vile little kingdom is in trouble.
So, to keep the masses happy and unwilling to revolt, the Saudis want to keep pumping their oil.
As Shakespeare said:
Uneasy lies the head that wears a crown. – Henry IV
Those of you who think that the Saudis have lowered their prices for any number of conspiratorial reasons are missing the point. The Saudis haven’t lowered their prices.
Remember this quote from the Washington AP bureau chief, in 1932:
All politics is local – Byron Price
(NOT Tip O’Neill)
Really. They hate that.
RussiaUnfortunately, this puts Russia in something of a bind, since half of all their income comes from petroleum and natural gas production. This means that Russia will not be able to fulfill all the promises that they have made. Lots of those promises were made to people outside of Russia, and lot of those promises were made to people inside Russia.
All politics is local
The ones made to non-Russians.
What are those promises that Russia is going to break?
Financial OrganizationsBecause banks and institutional investors hold those bonds. And worse, there are lots of derivatives swimming around, ready to bite somebody. If enough banks and institutional investors get hurt by all this…
Well, do you know what happens when banks and investors get hurt?
This causes the price for ‘stuff’ to fall. Those investors who own the same ‘stuff’ lose money, and THEY are also forced to sell – especially those who bought investments using debt, also known as ‘margin’.
Have you ever heard of a margin call?
It will be a ‘domino effect’ and it will sweep away a huge number of people that still have their money in financial institutions of ANY kind.
That means YOU.
GET OUTIf you have ANY money in an insurance policy, 401K, IRA, bank or any other company or organization… you will lose ALL of it over the coming months, if you do not get it out.
And, you will get NO warning.
Please. Do NOT try to figure out what or when your last warning will be. It will hit you when you least expect it, which is what the US government wants. They do NOT want you forewarned.
Please take your money out now, and buy something of tangible value. My preference is silver, followed by gold. But, you might think that something else will hold its value in the coming collapse. Food, water, ammunition and Bibles come to mind.
But, whatever you buy, it must be something that will hold its value in a collapse situation – which means that someone will want to buy it from you for at least a high fraction of the price you paid for it.
I really wish that this was some half-baked conspiracy theory that we could all wave away, but it isn’t. This is life and death.
And you are NOT ready for this.
(That’s a link. There’s not much time left.)
A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished. – Proverbs 22:3——————-
note – I am not offering financial or disaster preparation advice in a professional capacity. These are merely my own thoughts on what I would do in these situations.——————-
If you find a flaw in my reasoning, have a question, or wish to add your own viewpoint, leave a comment on the website. Your input is truly welcome.